Change in Capital Gains, Tax Cuts May Serve Hoteliers Well
New Delhi: Hoteliers are largely muted in their reaction to the Budget, though they see benefits from measures such as changes in capital gains tax rules, curbs on cash transactions and cut in tax rates for SMEs.
The usual industry requests like granting infrastructure status to hotels with a project cost upwards of .₹ 25 crore have not been met in the Budget. Industry leaders like Vikram Oberoi of The Oberoi Group said they were expecting also a reduction in corporate tax rates for large entities.
Patu Keswani, chairman of Lemon Tree Hotels, said next year’s budget might have the roadmap of what finance minister Arun Jaitley has promised — a progressive drop in corporate rates. “I think they will take one more year. And they will try and see how many people can come in the income tax net. If they get enough direct taxation, they will then play with indirect and corporate tax rates,” he added.Measures like reduction of tax rates to 25% for companies with turnover of less than .₹ 50 crore are expected to benefit standalone hotel owners.